Why has the number of solar panel orders in the Philippines risen sharply?

The reasons include the conflict in Iran that began on February 28, the threat of rolling blackouts, and a rise in tariffs of approximately 14% after the declaration of an energy emergency.

How much has demand grown according to the companies?

GoSolar reported a twofold increase in requests and a roughly fivefold increase in orders, while Meralco reported a shift from ~20 connections per month to 20 per day, with potential to reach 30 per day.

How has the payback period for residential solar power systems changed?

According to Ember, the payback period in the Philippines has shrunk from about four years to 3.1 years.

What measures are regional governments taking?

Cambodia abolished import duties on panels and storage units, Thailand is preparing rules for selling surplus to the grid, and Indonesia plans to increase solar generation to 100 GW in three years.

Energy Crisis Triggers Boom in Rooftop Solar Power Plants in Southeast Asia

The conflict in Iran, which began on February 28 and caused instability in global energy markets, has produced an unexpected side effect in Southeast Asia: a sharp rise in demand for residential solar power systems. In the Philippines, 63-year-old teacher Heidi Mendoza from the city of Marikina decided to invest around 390,000 pesos (approximately 6,500 US dollars) in installing solar panels on her home's roof. According to her remarks published by the New York Times, the main motivation was the threat of rolling blackouts: "I am worried about a possible power outage. Without electricity, I won't be able to work online."

Rising Prices and Record Demand

Mendoza's decision became part of a broader trend. In the Philippines, electricity prices were already among the highest in the region, and after serious power supply disruptions that forced the government to declare an energy emergency, tariffs rose by approximately 14%. GoSolar reported that the number of consultation requests more than doubled compared to the usual level, while the share of clients moving from a request to signing a contract grew from 20% to 35%. The company's total order volume increased roughly fivefold. The largest private electricity distributor, Meralco, recorded a similar surge: before the conflict, the company handled about 20 rooftop solar connections per month, but now this number has grown to 20 per day and could reach 30 per day.

Shortened Payback Period

The rise in tariffs has made investments in solar energy noticeably more attractive. According to research firm Ember, the payback period for a residential solar power system in the Philippines has shrunk from about four years to 3.1 years. The structure of demand is also changing: previously, most consumers chose grid-tied systems without battery storage, focusing primarily on reducing bills. Now, against the backdrop of outages and concerns about grid stability, more and more people are opting for systems with built-in batteries, where the ability to maintain power during a failure becomes a factor no less important than savings.

Regional Nature of the Phenomenon

The trend is not limited to the Philippines. In Yogyakarta, Indonesia, Adiana Julia plans to install solar panels at her parents' home in early next year to reduce reliance on the power grid: "It would be better if we found ways to reduce our dependence on the power grid," she told the NYT. In Malaysia, suppliers also note a significant increase in the number of systems installed daily since the start of hostilities, with consumers increasingly choosing higher-capacity systems. Southeast Asia relies heavily on fuel imports, so disruptions on strategic shipping routes, such as the Strait of Hormuz, quickly translate into the region's energy markets.

Government Policy and the Technological Factor

Alongside the consumer response, government policy is also being adjusted. In April, Cambodia abolished import duties on solar panels and energy storage systems, Thailand is finalizing rules allowing households to sell surplus solar energy back into the national grid, and Indonesia intends to increase solar generation to 100 GW within the next three years, although grid-connection regulation remains an obstacle for residents. Against this backdrop, technology costs are falling sharply: by December 2025, solar panel prices are expected to drop to a record low of about 9 cents per watt, significantly below levels from a decade ago thanks to the rapid expansion of production capacity in China. Thus, growing demand in Southeast Asia simultaneously expands the market for China — the world's largest center for solar panel production.

Energy Crisis Triggers Boom in Rooftop Solar Power Plants in Southeast Asia